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Problem 12-02AFNequation Broussard Skateboard's sales are expected to increaseby 20% from $7.4 million in 2016 to $8.88 million in 2017. Itsassets totaled $5 million at the end of 2016. Broussard is alreadyat full capacity, so its assets must grow at the same rate asprojected sales. At the end of 2016, current liabilities were $1.4million, consisting of $450,000 of accounts payable, $500,000 ofnotes payable, and $450,000 of accruals. The after-tax profitmargin is forecasted to be 6%, and the forecasted payout ratio is55%. What would be the additional funds needed? Do not roundintermediate calculations. Round your answer to the nearestdollar.________ $Assume that an otherwise identical firm had $6 million in totalassets at the end of 2016. The identical firm's capital intensityratio (A0*/S0) is _________ (A. higher than, B.Less than, C.equalto )than Broussard's; therefore, the identical firm _______ (Aless, B more, C the same) capital intensive - it wouldrequire________(A, smaller, B larger, C. the same) increase intotal assets to support the increase in sales.